In General, Prices Should Not Be Based on Costs Because

question 28

Multiple Choice

In general, prices should not be based on costs because

• A)consumers are cost-conscious.
• B)producers rarely know what their costs are.
• C)consumers make their purchase decisions based on perceived value.
• D)producers need to avoid creating a cost competitive parity debate.
• E)customers are always right.

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Definitions:

Directors

Individuals appointed or elected to oversee the management of a company and make key decisions.

Instrument

A formal legal document that represents a right or interest, such as a check, promissory note, or bond.

Credit

The ability to obtain goods or services before payment, based on the trust that payment will be made in the future.

Uniform Commercial Code

The Uniform Commercial Code (UCC) is a comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the law of sales and other commercial transactions.